Ams-osram Ag · SIX:AMS
Ams-osram — Q4 2023 Earnings Presentation
25 slides from Ams-osram's earnings presentation, Feb 9, 2024
Slide 1: Fourth Quarter and Fiscal Year 2023 Results Earnings Call
Sensing is life Fourth Quarter and Fiscal Year 2023 Results Earnings Call Aldo Kamper, CEO Rainer Irle, CFO Dr Juergen Rebel, SVP Investor Relations 09 February 2024
Slide 2: Fourth Quarter 2023 Business & Financial Update
Fourth Quarter 2023 Business & Financial Update 2
Slide 3: Group revenues and adjusted EBIT above mid-point of the guided range
Group revenues and adjusted EBIT above mid-point of the guided range All figures in EURm / % of revenues Total revenues EBIT, EBIT margin (adj.)2) ø EUR/USD 1.03 1.07 1.09 1.09 1.08 -23% -10% YoY 7.9% 7.3% 6.9% 1,177 0% like-for-like1) 5.4% 5.9% 123 41 927 904 908 -28% 851 110 1 12 -13% 1,013 908 81
Slide 4: Semiconductors: decline driven by consumer and I&M, all-time-high in automotive
Semiconductors: decline driven by consumer and I&M, all-time-high in automotive All figures in EURm / % of revenues Total revenues EBIT, EBIT margin (adj.)1) -18% -3% -36% 5.9% 5.6% 4.6% 2.8% 2.2% -19% 767 600 648 629 547 45 36 29 Q1 2023 13 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q2 2023 Q3
Slide 5: Semiconductors Segment in Q4: auto strong, I&M and consumer weak
Semiconductors Segment in Q4: auto strong, I&M and consumer weak Semiconductors segment, like-for-like Q4 development QoQ & YoY (excl. disposal effects), figures in EURm Semiconductor AM Revenues Semiconductor I&M Revenues Semiconductor Consumer Revenues +10% -42% +7% -17% -12% -6% 301 279 253 260 2
Slide 6: Continued strong design-win traction – Q4 2023 examples
Continued strong design-win traction – Q4 2023 examples Winning new business across the board LTV estimates* LIDAR (Automotive) >100 m€ to date Traditional Forward LED lighting +100 m€ in Q4 (Automotive) Material treatment (Industrial) Laser projection (Consumer) ~150m€ in FY23 dToF sensors (Consume
Slide 7: ams OSRAM - 'Outstanding Partner' award by BYD
ams OSRAM - ‘Outstanding Partner’ award by BYD The world’s leading EV maker in 2023 7
Slide 8: Lamps & Systems: seasonally strong Q4, continued weakness in industrial
Lamps & Systems: seasonally strong Q4, continued weakness in industrial All figures in EURm / % of revenues Total revenues EBIT, EBIT margin (adj.)2) -3% YoY like-for-like1) -32% -21% 411 17.1% 14.6% 13.7% 11.9% 10.2% 380 123 +9% 110 279 251 256 -6% 12 1 65 288 270 279 42 239 255 37 35 33 Q4 2022 Q1
Slide 9: ams OSRAM is at the forefront of LED retrofits in automotive
ams OSRAM is at the forefront of LED retrofits in automotive Increasing potential of retrofit solutions for on-road and off-road applications 2020 2022 2023 Way forward 1st ever on-road1) LED First leading player launching Further expansion of on-road Expand global leadership headlamp retrofit in Eu
Slide 10: Group: Gross Profit and OPEX sequentially flat, R&D further down
Group: Gross Profit and OPEX sequentially flat, R&D further down All figures in EURm / % of revenues Gross profit (adj.)1) R&D expenses (adj.)1) SG&A expenses (adj.)1) OPEX (adj.)1) 29% 29% 29% 29% 28% 12% 12% 11% 13% 11% 11% 13% 11% 11% 10% -21% -23% -28% -9% +4% -1% +15% -4% 336 250 272 127 127 22
Slide 11: Adj. net result / Adj. EPS impacted by re-financing
Adj. net result / Adj. EPS impacted by re-financing All figures in EURm / EUR per share Net results (adj.)1) EPS diluted (adj.)1) CHF 0.11 -0.02 0.12 0.10 -0.03 Net financing result (adj.)1) Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 29 31 29 0.11 0.12 0.11 -32 -25 -34 -43 6 Q4/23 0.02 Q4/23 Q4/22 Q1/23 Q2/23 Q3
Slide 12: Drop in Operating Cash Flow and elevated Capex put pressure on the FCF
Drop in Operating Cash Flow and elevated Capex put pressure on the FCF All figures in EURm / % of revenues Operating Cash Flow Cash Flow related to Capex Inflows from Divestments Free Cash Flow (FCF)1) incl. divestments, excl. interest payments 17% 17% 27% 22% 9% Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q4/22
Slide 13: Fiscal Year 2023 Business & Financial Update
Fiscal Year 2023 Business & Financial Update 13
Slide 14: FY 2023 – Achievements & Major Developments
FY 2023 – Achievements & Major Developments Changing course towards profitability, structural growth and investment grade profile New management team and new organizational set up established for clear ownership, 1 stringent execution and better monetization of innovation Strategic re-alignment to p
Slide 15: FY23 – like-for-like revenue decline mainly due to known consumer socket losses
FY23 – like-for-like revenue decline mainly due to known consumer socket losses Portfolio divestitures, inventory correction and phase out of specific consumer programs drove revenue decline Group Revenues Semi Automotive1) Semi Industry & Medical1) -26% -2% -25% -16% YoY 1,018 1,001 4,819 994 like-
Slide 16: FY23 – adj. EBIT reduction essentially driven by known consumer socket losses
FY23 – adj. EBIT reduction essentially driven by known consumer socket losses Adjusted EBIT and Free Cash Flow EBIT, EBIT margin (adj.) 1) Operating Cash Flow Free Cash Flow2) -43% 407 674 (8.4%) 4432) 599 -24 233 (6.5%) -128 -22 -1512) CY22 Portfolio Consumer Other CY23 CY 22 CY 23 CY 22 CY 23 sock
Slide 17: Well balanced maturity profile with diversified funding mix post refinancing Q4/23
Well balanced maturity profile with diversified funding mix post refinancing Q4/23 Current capitalization Current debt maturity profile €m, IFRS values as of December 2023 December-23 IFRS book values EUR million EUR m, repayment amounts as of December 2023 Cash (1,146) 987 Other Financial Debt 1),
Slide 18: Re-establish the Base program
Re-establish the Base program With Q2/23, the new management team announced a new strategy and an efficiency program ‘Re-establish the Base’. It aims to strengthen profitability with targeted run-rate savings of EUR ~150m by end of 2025 and adj. EBIT margin target of ~15% in the mid-term Set-up & In
Slide 19: FY2023: mid-term target growth model, strong design-win base & 're-establish-base'
FY2023: mid-term target growth model, strong design-win base & ‘re-establish-base’ drive structural growth & adj. EBIT improvement until 2026+ for turn-around Portfolio re-adjustment revenue target Over-the-cycle mid-term targets Key growth contributors Exit of Semi ~€3.6 to ~€4.1bn Revenues 1. Auto
Slide 20: FY 2023: strong design-win traction underpinning structural growth model
FY 2023: strong design-win traction underpinning structural growth model Majority in automotive, industrial & medical and consumer very strong Industrial Sensor ICs Colored ambient lighting Industrial dToF Sensors – iRGB (Automotive) High Pixelated Forward Lighting (EVIYOS®) Professional lighting (A
Slide 21: FY 2023: Innovation is at our core
FY 2023: Innovation is at our core Examples across industry verticals Next generation of medical imaging sensors ”Light out of nowhere”: LED-on-foil technology creates novel effects in automotive lighting Photon counting ALIYOS® − Unparalleled resolution in CT medical imaging − Successful technology
Slide 22: Outlook & Summary
Outlook & Summary 2 amifi OSRAM
Slide 23: Business Outlook
Business Outlook Q1 2024 Guidance 2024 comments − Revenue 800 m€ - 900 m€ − Divesting/exiting − Adj. EBIT 4% - 7% non-core semiconductor portfolio (2023 run-rate: 300 to 400 m€) − Based on assumption − H1/24 with continued macro weakness, H2/24 improving EUR/USD 1.08 (ramp of design-wins and expecte
Slide 24: Summary Q4 & FY 2023
Summary Q4 & FY 2023 Summary Q4/23: − Solid Q4 revenue and adj. EBIT performance above mid-point − Strong Design-Win traction continuing − Implementation of Re-establish-the-Base program well on track FY/23: − Strategic re-alignment & revised mid-term financial model − Re-financing completed ahead o
Slide 25: Q&A
Q&A Aldo Rainer Dr. Jürgen Kamper Irle Rebel CEO CFO Head of IR 25